namibia core portfolio - momentum namibia · page 2 of 30 namibia core portfolio research document...

Namibia Core PortfolioResearch DocumentFebruary 2020

of 30 Namibia | Core Portfolio Research Document | as at 29 February 2020

Economic and market outlook 04

Unlock efficiencies within your business 06

What do we mean by good governance? 07

Why partner with Momentum Wealth Namibia? 08

Why the Core Portfolio range? 08

Fund user guide 28

Contact us 30

Namibia | Core Portfolio Research Document | 29 February 2020 of 30

good governance is central to our

financial adviser proposition

As an investment provider, we believe it is

important that you feel confident that the

funds you choose for your clients perform in

line with expectations. As a result, we have put

in place a market-leading governance process

to assist you with both fund selection as well

as ongoing fund monitoring.

This brochure outlines how we put our skills

and experience into action and provides you

with insight into the sophisticated and robust

processes we have developed to support you,

our valued financial adviser.


Economic and market outlook Amidst unfavourable domestic conditions, 2019 showed the financial system of Namibia to be robust. The severe drought placed strain on the agricultural sector, while lower diamond and uranium output had a negative impact on the mining sector. The construction sector experienced similar challenges. The gross domestic product (GDP) expanded by 1.6% year-on-year in the fourth quarter of 2019, recovering from an upwardly revised 1.2% contraction at the end of September 2019. This was the first economic expansion since the third quarter of 2018, mainly due to an increase in public administration, hotels and restaurants, information and communication, financial intermediation, and the recovery of agriculture due to a significant increase in rainfall in the latter part of 2019. The local economy contracted with 1.1% in 2019.

The COVID-19 pandemic took world economies by storm in 2020, and the economic situation in Namibia suffered as a result. The lockdown from 28 March 2020 to 4 May 2020 had a significant impact on the local economy with most businesses, with the exception of emergency and essential services, having to close their doors,. As a result, the Bank of Namibia expects domestic growth to contract by 6.9% in 2020.

The Namibian annual inflation rate slowed further, from 2.6% in September 2019 to 2.1% in January 2020, the lowest annual rate since November 2015, with a slight increase in March 2020 to 2.4%. This slowdown is mostly as a result of base effects, as prices of public transportation services remained unchanged. Furthermore, consumer demand for goods and services has decreased in the current macroeconomic environment. Low business and consumer confidence have translated to lower overall inflation.

Following the announcement by Fitch Ratings that Namibia’s Long-Term Foreign-Currency Issuer Default Rating was downgraded to ‘BB’ from ‘BB+’ in October 2019, an upgrade was announced in April 2020 of Namibia’s National Rating from ‘AA-(zaf)’ to ‘AAA(zaf)’, with a stable outlook. National Ratings provide a relative measure of creditworthiness for rated entities only within the country. In this context, Namibia’s ‘AAA(zaf)’ rating denotes Fitch’s expectations of the default risk relative to other issuers or obligations. Fitch has also upgraded Namibia’s senior unsecured bonds rated on the national scale to ‘AAA(zaf)’ from ‘AA-(zaf).

The Bank of Namibia’s Monetary Policy Committee (MPC) cut the repo rate three times since the start of 2020 with 25 basis points in February and a subsequent cut of 200 basis points since the outbreak of the COVID-19 virus and lockdown period in Namibia. The repo rate is currently 4.25%. The MPC confirmed that it took this decision to help cushion the effect of the COVID-19 impact and support the domestic economic activity while maintaining the one-to-one link between the Namibian dollar and the South African rand.

Private sector credit extension increased slightly from 6.3% in 2018 to 6.8% in 2019. The growth is mainly contributed to an increased uptake in the retail, real estate, financial and service business sectors. According to the Bank of Namibia Financial Stability Report, the level of household indebtedness rose by 5% from 2018 to 2019 and stood at 97.7% at the end of 2019. The increase is mainly attributed to a demand in short term credit facilities.


Local and offshore asset class returns in US dollars

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

EM Bonds

9.20%

GlobalProperty

31.30%

DM Equity

26.68%

GlobalProperty

13.61%

EM Bonds

1.82%SA Bonds

30.19% EM Equity

37.28% Global Cash

2.08% DM Equity

27.67%DM Bonds

2.15%

DM Bonds

5.64% SA Equity

18.69%

Global Property

3.75%

EM Bonds

6.15% Global Cash

0.28%SA Equity

17.91%SA Equity

36.12%DM Bonds

-1.32%

Global Property

22.96%

EM Bonds

1.40%

Global Cash

0.32% EM Equity

18.22% Global Cash

0.28%SA Equity

5.21%

Global Property

0.09%

Commodities

13.35% DM Equity

22.40%EM Bonds

-5.33% EM Equity

18.44% Global Cash

0.40%

DM Equity

-5.54%EM Bonds

18.04% DM Bonds

-2.01% DM Equity

4.94% DM Equity

-0.87% EM Equity

11.19% SA Bonds

22.23%

Global Property

-7.04%

SA Bonds 13.40%

Global Property

-7.73%

Commodities

-6.93% DM Equity

15.83% EM Equity

-2.60% DM Bonds

0.83% DM Bonds

-3.24%EM Bonds

9.62%

Global Property

16.14%

SA Bonds

-7.34%EM Bonds

12.60% DM Equity

-9.01%

Global Property

-7.44%

SA Bonds

10.31%Commodities

-4.49%SA Bonds

0.29%EM Equity

-14.92% DM Equity

7.51%EM Bonds

8.29% DM Equity

-8.71%Commodities

11.44% EM Equity

-9.69%

SA Bonds

-11.41% DM Bonds

4.10% SA Equity

-6.21%Global Cash

0.24%SA Equity

-25.45%

Global Property

4.93%

DM Bonds

7.43%Commodities

-8.83%SA Equity

10.04%SA Bonds

-10.72%

SA Equity

-14.36%Commodities

2.03%EM Bonds

-8.31%EM Equity

-2.19%Commodities

-26.08% DM Bonds

1.95%Commodities

4.88% EM Equity

-14.58% DM Bonds

6.88%Commodities

-13.98%

EM Equity

-18.42%Global Cash

0.46%SA Bonds

-18.94%Commodities

-22.21%SA Bonds

-28.29%Global Cash

0.71%Global Cash

1.18%SA Equity

-24.76%Global Cash

2.61%SA Equity

-20.61%

Source: Bloomberg *Period 01 January 2020 to February 2020


Unlock efficiencies within your businessIn today’s increasingly uncertain investment landscape, the challenge of providing your clients with robust and compliant fund solutions is often a time consuming and high-risk undertaking for your advisory business.

We recognise how difficult it is for financial advisers to choose funds from an increasingly wide and complex international fund universe.

It is on this basis that we have decided to launch the Namibia Core Portfolio range that has been designed

to assist you by making sure that you are able to deliver expert advice and investment solutions that are capable of meeting your clients’ unique needs. By leveraging off our extensive multi-manager experience, we are able to provide you with access to focused investment expertise behind the scenes. Thus eliminating unnecessary risk from your advisory business.

Let us assist you in focusing your energies on what matters - your clients

What clients value most

Adviser time spent Client’s value

Plan preparation

Relationship management

Admin and implementation

Planpresentation

Productadvice

Ongoingreviews

Datagathering and

analysis

Performance feedback

What your client’s value most is service and their relationship with youWith only so many hours in the day, why not simplify your business by outsourcing some of your investment process, leaving you with more time to nurture your client relationships?

Where advisers spend the majority of their time


good governance allows you to choose from our extensive fund range with a greater degree of confidence

What do we mean by good governance?Good governance is about finding the best processes for making and implementing decisions. By applying good governance, we put your needs at the forefront of our thinking.

We recognise how difficult it is for you to choose funds that are capable of delivering on your client’s ambitious aspirations. We have therefore implemented a robust governance process that aims to make sure that the funds you select perform in line with expectations. We research the market so that you do not have to. By adopting good governance, we aspire to make sure that:

• There are no significant structural or organisational problems within the funds that could potentially affect future performance;

• Customers are treated fairly;

• Your clients benefit from reduced fund management fees as a result of extensive fee negotiations conducted by us on their behalf;

• Funds are being managed in line with their stated objectives.

Our good governance process involves:

• Conducting regular, in-depth due diligences on each fund before considering it for inclusion in the Namibia Core Portfolio range;

• We also continuously monitor each fund once it has been added to the Namibia Core Portfolio range.


Why partner with Momentum Wealth Namibia?We understand that your client base is likely to include various types of clients, each with their own unique needs and preferences. We also appreciate your desire to make sure that your clients have access to a comprehensive range of leading investment solutions that subscribe to good governance. We have therefore leveraged off our extensive investment expertise to make sure that both your clients and yourself benefit from the peace of mind of knowing that the funds chosen will perform in line with expectations.

Our investment process aims to identify funds that stand out due to superior quantitative and qualitative characteristics over various investment horizons.

Why the Core Portfolio range?As a leading provider of investments, our ambition is to leverage off our extensive investment expertise to provide the necessary oversight that is capable of

giving both you and your clients confidence in your fund selection.

The Core Portfolio range provides a select list of funds which serve to maximise opportunities whilst minimising any unnecessary risk. Each fund which forms part of the Core Portfolio range has been subjected to rigorous analysis and has been identified as a leader in its respective category. Further, the list represents unparalleled value. As a leading investment provider with access to unrivalled economies of scale, we have negotiated the most competitive fees on your behalf.

We have an extensive framework in place to make sure that our fund range is designed, developed, marketed, monitored and changed appropriately. We have leveraged extensively off investment experts to make sure that market-leading policies, processes and controls have been employed to support your fund selection.

Ongoing monitoring and fund manager

reviews

Gathering information to

ensure up to date knowledge

Steps infund screening

processMandate

categorisation for simplicity

Performance analysis by our experts

Face to face meetings on your behalf

We negotiate lower fees for your benefit


we make sure that you benefit from our most up-to-date views and fund

selection on our platform


Collective investment schemesA comprehensive range of leading local collective investment schemes

Core Portfolio investment componentsThis page provides a list of funds that form part of the Namibia Core Portfolio, categorised by type of investment strategy. The list is followed by a more detailed description of each of the funds.

Multi-asset growth strategiesNAM Coronation Balanced Plus Fund B Prudential Namibian Balanced Fund B

Allan Gray Namibia Balanced Fund D Momentum Namibia Diversified Growth Fund of Funds B1

Ninety One Namibia Managed Fund R Momentum Namibia Growth Plus Fund of Funds B1

Multi-asset fixed income strategiesMomentum Namibia Diversified Income Fund B1 Hangala Prescient Income Provider Fund A1

NAM Coronation Strategic Income Fund P

Absolute strategies low equityNAM Coronation Balanced Defensive Fund P Momentum Namibia Defensive Growth Fund B1

Prudential Namibian Inflation Plus Fund B Allan Gray Namibia Stable Fund D

Equity strategiesMomentum Namibia Real Growth Core Equity Fund B1

Cash and cash plus strategiesMomentum Namibia Money Market Fund B1

Specialist strategiesSanlam Namibia Property Fund B Standard Bank Namibia Flex Prop Inc Fund A

* Certain fund managers may levy a performance-based fee. Where the asset management fee is based on performance, the fee shown will be based on benchmark performance. Asset management fees shown exclude VAT.

Important: Performance characteristics shown above may relate to the funds existing retail fund class where the clean class has been recently introduced.

Namibia | Core Portfolio Research Document | as at 29 February 2020 of 30

0

20

40

60

80

100

120

140

160

2014 2015 2016 2017 2018 2019

NAM Coronation Balanced Plus B Peer Group Average EAA OE ZAR/NAD Moderate Allocation

-16.0%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

2015 2016 2017 2018 2019 2020

-6%

-4%

-2%

0%

2%

4%

6%

2016 2017 2018 2019 2020

Relative to Peer Group Average EAA OE ZAR/NAD Moderate Allocation

Relative to Peer Average

Multi-asset growthNAM Coronation Balanced Plus Fund B

Rolling returns Cumulative drawdown

Fund details

Launch date: 01 April 2011

Annual management fee:* 0.85%

Fund class: Clean

Benchmark: Average Return of Namibia PeerGroup Funds

Portfolio managers: Eino Emvula and Karl Leinberger

Fund performance

Fund returns - as at 29 February 202012 months 3 years (annualised) 5 years (annualised) 10 years (annualised)

NAM Coronation Balanced Plus Fund B -4.65% 2.11% 2.50% -

Peer average -0.46% 3.69% 4.02% -

Quartile rank 3 2 3 -

Percent rank 53 50 64 -

Annualised standard deviation 15.30% 11.21% 10.15% -

Sharpe ratio -0.76 -0.44 -0.44 -

Maximum drawdown -14.23% -14.23% -14.23% -

Source: Morningstar

Source: Morningstar

Fund description

The fund aims to maximise long-term returns with a strong bias toward growth assets and moderate levels of risk. The fund can invest in a wide variety of assets such as shares, bonds, listed property and cash in Namibia, South Africa and internationally. The fund complies with Regulation 13.

Source: Morningstar Source: Morningstar




-6%

-4%

-2%

0%

2%

4%

2018 2019 2020



90

95

100

105

110

115

120

2016 2017 2018 2019

Allan Gray Namibia Balanced D Peer Group Average EAA OE ZAR/NAD Moderate Allocation

-9.00%

-8.00%

-7.00%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2017 2018 2019 2020

Multi-asset growthAllan Gray Namibia Balanced Fund D


Fund details

Launch date: 03 January 2017


Fund class: Clean

Benchmark:

The return of a daily weightedaverage index of Namibian multiasset class funds that comply withthe limits governing Namibianretirement funds.

Portfolio managers: Duncan Artus, Birte Schneider

Fund performance


Allan Gray Namibia Balanced Fund D 1.14% 4.44% - -

Peer average -0.46% 3.69% - -

Quartile rank 2 2 - -

Percent rank 31 36 - -

Annualised standard deviation 11.98% 9.35% - -

Sharpe ratio -0.49 -0.27 - -

Maximum drawdown -8.50% -8.50% - -

Source: Morningstar

Source: Morningstar

Fund description

The Fund aims to earn a higher total rate of return than that of the average Namibian retirement fund investment manager over the long term. The Fund invests in a mix of shares, bonds, property, commodities and cash. The Fund may buy assets outside the common monetary area (CMA) up to a maximum of 35% of the Fund (with an additional 5% for Africa ex-CMA). The Fund typically invests the bulk of its foreign ex-Africa allowance in a mix of funds managed by Orbis Investment Management Limited, our offshore investment partner. The maximum net equity exposure of the Fund is 75%. The Fund is managed to comply with the investment limits governing retirement funds. Returns are likely to be less volatile than those of an equity-only fund.





-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

-30%

-20%

-10%

0%

10%

20%

30%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020



0

200

400

600

800

1 000

1 200

1 400

1 600

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Ninety One Namibia Managed R Peer Group Average EAA OE ZAR/NAD Moderate Allocation

Multi-asset growthNinety One Namibia Managed Fund R


Fund details

Launch date: 01 May 1997

Annual management fee:* 1%

Fund class: Clean

Benchmark: Peer group average

Portfolio managers:Lazarus Shigwedha and Chris Freund

Fund performance


Ninety One Namibia Managed Fund R 4.15% 6.83% 5.98% 10.50%

Peer average -0.46% 3.69% 4.02% 8.21%

Quartile rank 2 1 1 1

Percent rank 36 10 14 13

Annualised standard deviation 13.14% 10.12% 9.06% 8.16%

Sharpe ratio -0.22 -0.02 -0.11 0.43

Maximum drawdown -8.77% -8.77% -8.77% -8.77%

Source: Morningstar

Source: Morningstar

Fund description

The Ninety One Namibia Managed Fund aims to provide investors with stable growth of capital over the long term. The fund invests in Namibian and South African equity, bonds and money market instruments, as well as international equity and fixed interest investments. The fund is managed to comply with Regulation 13 of the Namibian Pension Funds Act.





-10%

-5%

0%

5%

10%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020



-16.0%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Prudential Namibian Balanced B Peer Group Average EAA OE ZAR/NAD Moderate Allocation Peer Average

Multi-asset growthPrudential Namibian Balanced Fund B


Fund details

Launch date: 01 August 2008


Fund class: Clean

Benchmark: Morningstar Moderate AllocationCategoryMean

Portfolio managers: Michael Moyle

Fund performance


Prudential Namibian Balanced Fund B -5.79% 3.28% 4.30% 9.07%

Peer average -0.46% 3.69% 4.02% 8.21%




Sharpe ratio -0.75 -0.32 -0.28 0.24


Source: Morningstar

Source: Morningstar

Fund description

The Fund aims to achieve steady growth of capital and incomethrough investments in an actively managed, diversified combinationof domestic and international assets where the asset allocation istactically managed. The Fund is managed to comply with regulationsgoverning retirement fund investments in Namibia.





-25%

-20%

-15%

-10%

-5%

0%

2019

Relative to Namibian CPI+5% over a rolling 5-year period

Relative to Peer Average -20%

-15%

-10%

-5%

0%

2018 2019

0

20

40

60

80

100

120

2018 2019

Momentum Namibia Diversified Gr FoF B1 Namibian CPI+5% over a rolling 5-year period Peer Average


Fund details

Launch date: 23 October 2018


Fund class: Clean

Benchmark: NCPI + 5% over rolling 5 yearperiods

Portfolio managers:Eugene Botha and TaruvonaMashamhanda

Fund performance


Momentum Namibia Diversified Gr FoF B1 -11.46% - - -

Peer average -0.46% - - -

Quartile rank 4 - - -

Percent rank 97 - - -

Annualised standard deviation 17.50% - - -

Sharpe ratio -1.06 - - -

Maximum drawdown -18.44% - - -

Source: Morningstar

Source: Morningstar

Fund description

The fund is a medium equity, multi-asset, Fund of Funds portfolio which aims to provide investors with moderate growth in income and capital over the long term. The portfolio is suited to investors with a moderate risk profile targeting a total return of CPI + 5% (gross) a year over any five-year rolling period. A tolerance for capital volatility over the short to medium term is required and a five year or longer investment horizon. A multi strategy approach is taken which includes passive, smart beta and active strategies. The composition of the portfolio reflects the investment structure of a retirement fund witha moderate risk profile and is managed in line with the prudentialguidelines set out in Regulation 13 of the Namibia Pension funds Act.


Momentum Namibia Diversified Growth FoF B1 Multi-asset growth




-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

2019


Relative to Peer Average-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

2018 2019

0

20

40

60

80

100

120

2018 2019

Momentum Namibia Growth Plus FoF B1 Namibian CPI+6% over a rolling 6-year period Peer Average

Multi-asset growth


Fund details



Fund class: clean

Benchmark: NCPI + 6% over periods longerthan rolling 6 years

Portfolio managers:Eugene Botha andTaruvona Mashamhanda

Fund performance


Momentum Namibia Growth Plus FoF B1 -18.38% - - -







Source: Morningstar

Momentum Namibia Growth Plus FoF B1

Fund description

The fund is a high equity, multi-asset, Fund of Funds portfolio whichaims to provide investors with high growth in income and capital overthe long term. The portfolio is suited to investors with a moderateto high risk profile targeting a total return above CPI + 6% (gross)a year over any rolling period longer than 6 years. A tolerance forcapital volatility over the short to medium term is required and a longterm investment horizon. A multi strategy approach is taken whichincludes passive, smart beta and active strategies. The compositionof the portfolio reflects the investment structure of a retirement fundwith a moderate risk profile and is managed in line with the prudentialguidelines set out in Regulation 13 of the Namibia Pension funds Act.


Source: Morningstar




0%

0%

0%

0%

0%

1%

2019

Relative to 90% IJG Namibia Money Market Index and 10% Short Term FixedInterest Composite Index (SteFI)


949698

100102104106108110112

2018 2019

Momentum Namibia Diversified Income B1 60% IJG Namibia Money Market Index/40%STeFI plus 0.5%

Peer Average

NOT AVAILABLE


Fund details



Fund class: Clean

Benchmark: 40% SteFI, 60% IJG MM + 0.5%per annum over rolling 2 year periods

Portfolio managers:Eugene Botha andTaruvona Mashamhanda

Fund performance


Momentum Namibia Diversified Income Fund B1 6.29% - - -

Peer average 4.50% - - -






Source: Morningstar

Source: Morningstar

Fund description

The fund is a low to moderate risk, largely domestic, flexible income portfolio which aims to deliver STEFI plus 0.5% through the interest rate cycle. The portfolio is suited to investors who require a regular, reliable source of income while being prepared to take some risk in exchange for modest capital gains. The fund has a flexible income mandate under a multi-manager approach which allows for investment across the fixed income universe including property. Multimanagement provides diversification benefits through different investment styles and strategies.


Momentum Namibia Diversified Income Fund B1 Multi-asset fixed income




-0.35%

-0.30%

-0.25%

-0.20%

-0.15%

-0.10%

-0.05%

0.00%

0.05%

2015 2016 2017 2018 2019

-2%

-1%

1%

2%

3%

2016 2017 2018 2019

Relative to IJG Money Market GR NAD Relative to Peer Average

0

20

40

60

80

100

120

140

160

2015 2016 2017 2018 2019

NAM Coronation Strategic Income P IJG Money Market GR NAD Peer Average

Multi-asset fixed income


Fund details

Launch date: 1 November 2007


Fund class: Clean

Benchmark: IJG Money Market Index

Portfolio managers: Eino Emvula, Nishan Maharaj

Fund performance


Nam Coronation Strategic Income Fund P 3.76% 7.00% - -

Peer average 6.25% 7.62% - -




Sharpe ratio -0.62 0.00 - -


Source: Morningstar

Source: Morningstar

Fund description

A widely diversified, actively managed fund that aims to provide a higher level of return than a traditional money market or pure income fund by attaining a mix of capital growth and income. The fund is tactically managed to secure an attractive return, while protecting capital. The fund can invest in a wide variety of assets, such as cash, government and corporate bonds, inflation-linked bonds and listed property, in Namibia. The fund has a flexible mandate with prescribedmaturity or duration limits for its investments.


Nam Coronation Strategic Income Fund P




-6%

-4%

-2%

0%

2%

4%

2013 2014 2015 2016 2017 2018 2019

Relative to STeFi Call 110% Relative to Peer Average-3.5%

-3.0%

-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

2012 2013 2014 2015 2016 2017 2018 2019

0

20

40

60

80

100

120

140

160

180

200

2012 2013 2014 2015 2016 2017 2018 2019

Hangala Prescient Income Provider A1 STeFi Call 110% Peer Average

Multi-asset fixed income


Fund details

Launch date: 31 July 2012


Fund class: Clean

Benchmark: STeFi Call 110%

Portfolio managers: Prescient Interest Bearing Team

Fund performance


Hangala Prescient Income Provider Fund A1 3.86% 6.55% 7.33% -

Peer average 4.50% 7.18% 7.51% -




Sharpe ratio -0.81 -0.19 0.18 -


Source: Morningstar

Source: Morningstar

Fund description

This Fund invests in local and offshore money market, bonds, property, preference shares, inflation-linked bonds and derivatives to meet the investment objectives. Fund performance can be generated from taking interest rate views or duration, yield enhancement via credit instruments, asset allocation between income producing asset classes, offshore exposure and also via the use of derivatives. The Fund aims to generate income and outperform the South African cash and short-term bond market through a full interest rate cycle. In addition, the Fund aims to provide some growth in capital. At least 35% of the Fund will be invested in Namibian assets. The Fund is Regulation 13 complaint.


Hangala Prescient Income Provider Fund A1




-15%

-10%

-5%

0%

5%

2016 2017 2018 2019


Relative to Peer Average-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

2015 2016 2017 2018 2019

0

20

40

60

80

100

120

140

160

2015 2016 2017 2018 2019

NAM Coronation Balanced Defensive P Namibian CPI+4% over a rolling 3-year period Peer Average


Fund details

Launch date: 01 November 2007


Fund class: Clean

Benchmark: Namibian CPI

Portfolio managers:Eino Emvula, Charles de Kock and Pallavi Ambekar

Fund performance


NAM Coronation Balanced Defensive Fund P -0.96% 4.06% - -

Peer average 2.02% 4.97% - -




Sharpe ratio -0.77 -0.41 - -


Source: Morningstar

Source: Morningstar

Fund description

The fund aims to provide a reasonable level of current income and seeks to preserve capital in real terms, with lower volatility over the medium to long-term. The fund is managed to protect capital over any 12 month period. In addition, the fund aims to achieve reasonable investment growth over the long run. The fund can invest in a wide variety of assets, such as cash, government and corporate bonds, inflation-linked bonds and listed property, in Namibia, South Africa and internationally.


NAM Coronation Balanced Defensive Fund P Absolute strategies




-15%

-10%

-5%

0%

5%

10%

15%

20%

2013 2014 2015 2016 2017 2018 2019 2020

Relative to Namibian CPI+4% over a rolling 3-year period Relative to Peer Average-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016 2017 2018 2019

Prudential Namibian Inflation Plus B Namibian CPI+4% over a rolling 3-year period Peer Average

Absolute strategiesPrudential Namibian Inflation Plus Fund B


Fund details

Launch date: 01 July 2011


Fund class: Clean

Benchmark: Namibian CPI+4% over a rolling3-year period

Portfolio managers: Michael Moyle

Fund performance


Prudential Namibian Inflation Plus Fund B -1.15% 4.68% 5.00% -

Peer average 2.02% 4.97% 5.14% -




Sharpe ratio -0.83 -0.34 -0.33 -


Source: Morningstar

Source: Morningstar

Fund description

The Fund aims to produce above inflation returns by investing ininflation-linked bonds, other interest-bearing securities and equities.The Fund has two objectives: 1. The primary objective is to outperformNamibian CPI by 4% per annum before fees and tax over rollingthree-year periods. 2. The secondary objective is to aim for no lossesover rolling 12-month periods. The fund is managed to comply withregulations governing retirement fund investments in Namibia.





-15%

-10%

-5%

0%

5%

2019


Relative to Peer Average-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

2018 2019 2020

85

90

95

100

105

110

115

2018 2019 2019

Momentum Namibia Defensive Growth B1 Namibian CPI+4% over a rolling 3-year period Peer Average


Fund details



Fund class: Clean

Benchmark: NCPI + 4% over rolling 3 yearperiods


Fund performance


Momentum Namibia Defensive Growth Fund B1 -3.07% - - -







Source: Morningstar

Source: Morningstar

Fund description

The fund is a conservatively managed, multi strategy, multi managerabsolute return portfolio which aims to provide investors with modestgrowth in income and capital growth over the long term with a limitedlevel of capital protection. The fund includes managers who usederivative protection to reduce downside risk in bear markets whilepreserving upside potential when markets rally. The fund also includesmanagers who dont use derivative protection but use tools such asdiversification and asset allocation to manage risk. The fund primarilyaims to meet the inflation linked objective and has the secondary aimof minimising capital losses over rolling 12 month periods.


Momentum Namibia Defensive Growth Fund B1 Absolute strategies




-8.0%

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

2017 2018 2019 2020

-15%

-10%

-5%

0%

5%

10%

2017 2018 2019

Relative to Daily interest rate supplied by Standard Bank namibia Ltd + 2%


0

20

40

60

80

100

120

140

2016 2017 2018 2019

Allan Gray Namibia Stable D Daily interest rate supplied by Standard Bank namibia Ltd + 2% Peer Average


Fund details

Launch date: 02 December 2016


Fund class: Clean

Benchmark: daily interest rate, as supplied byStandard Bank Namibia Limited,plus 2%.

Portfolio managers: Duncan Artus, Birte Schneider

Fund performance


Allan Gray Namibia Stable Fund D 0.29% 4.17% - -

Peer average -0.46% 3.69% - -




Sharpe ratio -0.70 -0.37 - -


Source: Morningstar

Source: Morningstar

Fund description

The Fund aims to provide a high degree of capital stability and tominimise the risk of loss over any two-year period, while producinglong-term returns that are superior to bank deposits. The Fundinvests in a mix of shares, bonds, property, commodities and cash.The Fund typically invests the bulk of its foreign ex-Africa allowancein a mix of funds managed by Orbis Investment Management Limited,our offshore investment partner. The maximum net equity exposureof the Fund is 40%. The Fund is managed to comply with Regulation13 of the Namibian Pension Funds Act. Returns are likely to be lessvolatile than those of an equity-only fund or a balanced fund.


Allan Gray Namibia Stable Fund D Absolute strategies




-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

2018 2019

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2019

Relative to FTSE/JSE Capped SWIX All Share TR ZAR Relative to Peer Average

0

20

40

60

80

100

120

2018 2019

Momentum Namibia Real Growth Core Eq B1 FTSE/JSE Capped SWIX All Share TR ZAR Peer Average

Momentum Namibia Real Growth Core Equity Fund B1


Fund details



Fund class: Clean

Benchmark: FTSE/JSE Capped Swixover periods longer than rolling7 years


Fund performance


Momentum Namibia Real Growth Core Eq Fund B1 -25.03% - - -







Source: Morningstar

Source: Morningstar

Fund description

The fund is a predominantly Namibian, multi-strategy, equity portfoliothat is executed through a combination of predominantly passiveindex tracking and enhanced index tracking and aims to maximisereturns over the FTSE/JSE Capped Swix over time.


Equity




0%

0%

0%

0%

0%

1%

2019Relative to 90% IJG Namibia Money Market Index and 10% Short TermFixed Interest Composite Index (SteFI)


80

85

90

95

100

105

110

115

120

2018 2019 Momentum Namibia Money Market B1 90% IJG Namibia Money Market Index and 10% Short Term Fixed Interest Composite Index (SteFI) Peer Average


Fund details



Fund class: Clean

Benchmark: 10% SteFI, 90% IJG MMover rolling 1 year periods

Portfolio managers: Zisanda Gila

Fund performance


Momentum Namibia Money Market Fund B1 7.79% - - -





Sharpe ratio 8.55 - - -

Maximum drawdown 0.00% - - -

Source: Morningstar

Source: Morningstar

Fund description

The fund is a low risk, fixed income portfolio which aims to outperform the composite benchmark over rolling one year periods (before fees). The fund invests in Namibia & South African instruments. The portfolio is suited to investors with a low risk profile seeking the highest possible income yield with capital stability a further aim. The portfolio retains many of the characteristics of a shorter duration typical money market fund, but a more flexible mandate increases the universe of investable securities. Additional credit risk and the ability to capture term premiums in longer dated instruments allows for the potential for enhanced returns with a commensurate increase in risk relative to 90 day money market funds.


Momentum Namibia Money Market Fund B1 Cash and cash plus fund

NOT AVAILABLE




-8%

-6%

-4%

-2%

0%

2%

4%

2012 2013 2014 2015 2016 2017 2018 2019

Relative to FTSE/JSE SA Listed Property TR ZAR Relative to Peer Average-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

2012 2013 2014 2015 2016 2017 2018 2019 2020

0%

5000%

10000%

15000%

20000%

25000%

30000%

2011 2012 2013 2014 2015 2016 2017 2018 2019

Sanlam Namibia Property B FTSE/JSE SA Listed Property TR ZAR Peer Average

Specialist


Fund details

Launch date: 01 June 2011


Fund class: Clean

Benchmark: SA Listed Property Index (FTSE/JSESA Listed Property Index (J253)

Portfolio managers: The Satrix Investment Team

Fund performance


Sanlam Namibia Property Fund B -45.90% -22.38% -13.45% -

Peer average -43.39% -20.09% -11.39% -




Sharpe ratio -1.22 -1.07 -0.89 -


Source: Morningstar

Source: Morningstar

Fund description

The Sanlam Namibia Property Fund is a specialist index tracking fund.The Fund is rebalanced quarterly. We believe that the benchmarkchoice and resulting returns from the most important elements ofan equity strategy - by investing in a passive vehicle the returnsto investment strategies are known. By applying a full replicationstrategy there is no risk of deviation from the chosen benchmark.


Sanlam Namibia Property Fund B




-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Relative to IJG MM 50.000% + FTSE/JSE SA Listed Property TR ZAR 50.000%Relative to Peer Average

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

0

100

200

300

400

500

600

2005 2006 2007 2008 2008 2009 2010 2011 2011 2012 2013 2014 2014 2015 2016 2017 2017 2018 2019

Standard Bank Namibia Flex Prop Inc A IJG MM 50.000% + FTSE/JSE SA Listed Property TR ZAR 50.000% Peer Average


Fund details

Launch date: 30 December 2005


Fund class: Clean

Benchmark: FTSE/JSE Listed Property Index (SAPY) 50%, IJGNamibia Cash Index 50%

Portfolio managers: Keillen Ndlovu and Nesi Chetty

Fund performance


Standard Bank Namibia Flex Prop Inc Fund A -14.69% -8.22% -3.75% 4.65%

Peer average -43.39% -20.09% -11.39% 3.14%




Sharpe ratio -1.44 -1.26 -1.07 -0.27


Source: Morningstar

Source: Morningstar

Fund description

The Standard Bank Namibia Flexible Property Income Fund is a specialist fund which seeks to provide capital growth and an income source for investors through investment in Namibian and South African listed property shares, debentures, debenture stocks and debenture bonds. The Fund is required to hold a minimum of 30% and maximum of 60% in fixed interest securities. Furthermore the fund must have a minimum of 40% and maximum of 70% exposure to shares in listed property companies at the discretion of the portfolio manager. The portfolio aims to produce a reasonably high, sustainable and growing level of income for investors with the possibility of capital growth over the medium and longer term.


Standard Bank Namibia Flex Prop Inc Fund A Specialist


Fund user guideThe definitions below aim to provide you with further explanation regarding some of the technical terms that have been used in this document.

Fund descriptionA fund description provides an overview of each fund’s unique investment objective, along with an explanation of the investment strategy employed to achieve the fund’s stated objective. A fund description may also provide insight into the asset classes held within the respective fund at any given point in time, along with an indication of expected volatility.

Clean class The global trend of increased cost transparency has resulted in several fund managers launching clean fund classes.

A clean fund class is managed in exactly the same manner as existing fund classes, with the exception of boasting the benefit of lower annual management charges.

Quartile and percentile rankingsThese performance measures provide a comparative perspective of how a particular fund has performed in relation to its industry peers. Each peer group is broken down into either quartiles (four groups) and/or percentiles (100 groups). The goal of each fund is to rank as high as possible in its respective universe. For example, a fund which ranks within the first quartile

over a particular period has performed within the top 25% of its peer group.

Past performancePast performance may provide an indication of how successful the fund has been in generating alpha (excess returns) over any particular historic period. It should be noted that past performance is not necessarily an indication of how the fund will perform in the future.

Peer averageIn this document the peer group refers to the appropriate universe of funds which share similar characteristics and/or benchmarks. The peer average of a fund is the average performance of all the funds that form part of the same peer group.

Rolling returnsThe rolling returns graph shows the fund’s performance over 12-month rolling periods relative to its peer average and a comparative index.

Cumulative drawdownThe cumulative drawdown graph shows when a fund has had a month with a negative return and expresses this negative return as a percentage of the previous highest fund value.


Additional notesWe may decide to remove a fund from the Core Portfolio range for commercial reasons, due to a fund closing or due to concerns around the fund or management group.

Most fund managers will underperform at some point due to normal market dynamics, therefore we will not remove funds based solely on short-term underperformance. Instead, we look at the circumstances around the underperformance, to determine whether it is attributable to a fundamental problem within the fund/fund manager’s business. Some of the possible problems could include poor internal risk controls, significant changes within the investment team or misalignment with the stated processes.

Where we deem the problem to be significant, the fund may be removed from the Core Portfolio range.

The Core Portfolio range is a selection of external and in-house collective investment schemes across the various collective investment scheme categories. The funds in this range generally offer an improved fee experience to investors compared to similar funds that are not included in the range.

What does governance not do:• Advise on the suitability of a fund, product or

provide financial advice. The information contained in this brochure is of a technical or similar nature and should not be construed as advice.

• Provide any guarantees about the funds which form part of the Core Portfolio range.

• Prevent fraud.

Contact usContact your marketing adviser if you have any questions.

Disclaimer:

The information provided in this document is targeted at financial advisers and is provided for general information purposes only and may not be relied upon as exclusive forecast and investment research material. The information contained in this document including opinions expressed is derived from proprietary and non-proprietary sources deemed by Momentum Wealth Namibia to be reliable. It is not necessarily all inclusive but is accurate as at the date of its publication. We do not provide any guarantees about the funds which form part of this fund range and our good governance process cannot prevent fraud.

We reserve the right to add, modify, and change certain sections of this document or remove it in its entirety at any time for any reason. You agree to refer to our website for an updated version of this document. You are aware that some of the investment funds named in this document are not necessarily owned and managed by us and may be removed and/or be unavailable in the future. You acknowledge that it is your responsibility to conduct suitability analysis and due diligence on the investment fund as part of your investment mandate with the investor and your investment advice process.

General investment risks

The investor accepts there are specific investment risks for every type of investment fund, such as shares, collective investment schemes and/or investment funds. To assist in making an informed decision, please refer to the relevant latest minimum disclosure documents (MDDs, also known as fact sheets), for information on the portfolio. MDDs provide detailed explanations of the risks and the potential downside of a portfolio, which may change from time to time. MDDs can be obtained from the relevant CIS manager, investment manager or your financial adviser. The following risks are specifically mentioned, but not limited hereto, and it remains the investors’ responsibility to educate themselves and remain informed on investment risks that apply:

1. Collective Investment Schemes in Securities (CIS) are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and securities lending. A schedule of fees and charges and maximum commissions is available on request from the company or scheme. Commission and incentives may be paid and if so, would be included in the overall costs.

2. Money market portfolios: The price of each unit is aimed at a constant value. The total return to the investor is primarily made up of interest received but, may also include any gain or loss made on any particular instrument. In most cases this will merely have the effect of increasing or decreasing the daily yield, but in an extreme case it can have the effect of reducing the capital value of the fund.

3. We do not provide any guarantees about the funds which form part of the Core Portfolio range.

4. We aim to prevent fraud from taking place.

Momentum Namibia Core Portfolio Research Document (Advisors Version) 01/2020 V1

Momentum Wealth Namibia (Pty) Limited C/o Dr. Frans Indongo and Werner List Street Windhoek NamibiaPO Box 3785 Windhoek NamibiaTelephone +264 61 297 3737 Facsimile +264 61 248 191Registration number 2016/0297 www.momentum.com.na

For intermediary use only.

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